The Indian government-owned Power Finance Corp (PFC) plans to launch a private equity fund for investing in the domestic power sector. PFC is reportedly in talks with leading investment bankers including Goldman Sachs for raising the fund. The fund, which is expected to have $1 billion in corpus, is intended to support the last-mile equity requirement of power projects.
The fund is likely to be registered in overseas tax havens like Mauritius, Cyprus or Isle of Mann to get maximum tax benefits for the investors and encourage them to increase exposure to the power sector.Mauritius is apparently the first priority for the company.
All the approvals from the power and finance ministries have been obtained and the company may announce the fund later this month, the report adds. The power sector needs a about $250 billion investment, while it needs at least $75 billion in equity support.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment